Daily Market Update August 3, 2017

Early Morning Update

The Sep17 natural gas contract is trading up $0.03 at $2.84.

Summary

The Sep17 natural gas contract saw little volatility in trading on Wednesday, and closed the session down less than a penny, settling at $2.811.  Near-term weather forecasts are looking quite bearish, with both the 6-10 and 8-14 day forecasts showing below-average temperatures across the eastern two-thirds of the country, with much-below-average weather focused on the central U.S.  The Energy Information Administration posts their weekly storage number later this morning.  The consensus of current estimates is hovering right around a 19 Bcf injection, which is well below the 5-year average of 44 Bcf.  End-of-season projections have trended lower in recent weeks and are currently near 3.8 Tcf.  With the prospects for cooler weather extending into mid-August, we may see the end-of-season projections begin trending back towards the 5-year average of 3.87 Tcf.

Market Update 080317